Seeking Alpha

One of the stranger outcomes of gold's collapse is to make gold miners look more expensive,...

One of the stranger outcomes of gold's collapse is to make gold miners look more expensive, which Nomura says means more downside for the miners. "Lower levels of investment demand have the equilibrium point for the gold price at still lower levels. [If so], the equities should still have further to retrace." It's another down day for South African miners: HMY -5.6%, GOLD -4.5%, AU -4%, GFI -1.2%. (also)
Comments (6)
  • TwistTie
    , contributor
    Comments (2476) | Send Message
    Where are the inflatiphobes, contrarians and hedge fund managers now?


    I started a small position in GGN hoping to lock in a high yield while the shares are getting crushed.


    This is radical.
    17 Apr 2013, 05:15 PM Reply Like
  • alsobirdman
    , contributor
    Comments (428) | Send Message
    Good move TT. I was happy to buy GGN at 14 last year. Steal at 10. Did buy some BUGT, HL, and AGQ. This won't last forever.
    17 Apr 2013, 08:52 PM Reply Like
  • RM13
    , contributor
    Comments (1070) | Send Message
    I agree, GGN at these levels is a good move. Initiated mine in low 12s, added more at low 11s, will add more on 10 to 20 percent drops.
    18 Apr 2013, 01:12 PM Reply Like
  • osanbat9
    , contributor
    Comments (12) | Send Message
    NUGT recently had a reverse split of what....six to one? If not for that it would be near extinction from it's haydays of the over one hundred? Fortunes erased by hype..............
    17 Apr 2013, 05:25 PM Reply Like
  • lucagrs
    , contributor
    Comments (68) | Send Message
    Nomura talking nonsense as usual, gold is stabilizing because physical demand is coming back. Also a weakening Rand is good for south-african miners as 50% of cost is labour and unprofitable pits can be shut very quickly.
    17 Apr 2013, 06:26 PM Reply Like
  • jackscure
    , contributor
    Comments (43) | Send Message
    10:08am: ...Wall Street analysts are starting to defend beaten-down gold miners, as Deutsche Bank upgrades South Africa's Gold Fields (GFI +2.6%) and AngloGold (AU +1.1%) to Buy from Hold. While the firm says the stocks look more expensive vs. spot gold (25x FY14 estimates), it believes the miners will now prioritize cost and capex cuts to protect free cash flow.


    Then 3:15pm: this Nomura crap comes out.


    Only 1 thing is proven and that is that analysts and brokers don't know anything- other than whatever it is they're trying to tout.. Bottom line: How could mining stocks being trading at 400% of what they were trading at now 2 years ago when gold prices were lower than they are now- and be considered expensive?
    18 Apr 2013, 02:59 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs